Weimerica Weekly – Episode 74 – Real Estate Bubbles And Buying

Welcome to Weimerica Weekly Episode 74. The podcast airs every Tuesday.

This week’s podcast is on real estate bubbles.

Weimerica Weekly is a podcast hosted by Ryan Landry that touches on the cultural, political and sexual topics that fill the mindspace of our United States of Weimerica. The politicization of all cultural and social degeneracy is examined with a focus on how it fits together.

Weimerica Weekly is produced by the Hestia Society and distributed by Social Matter.

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If you are interested in sponsoring Weimerica Weekly, e-mail Ryan Landry at Mrossi34228 at gmail dot com. Sponsorships start at $10 an episode, and all proceeds will either go back into the podcast or provide some compensation for your most grateful host.

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6 Comments

  1. This was a great episode. I was in the process of purchasing a home recently when I discovered that the seller was asking 50% more than he purchased it for in 2014 — with no major improvements made over the intervening time period. We are almost certainly in another housing bubble.

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  2. A successful investor told me that he knew it was time to get out of real estate when his UPS delivery man told him that he was flipping houses in Florida.

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  3. Another thing I would add about looking at a place to live in a small-ish college town: Make sure you check on the school’s enrollment trends and endowment. The school either needs to be a large or indispensable state school, or a prestigious private school. In many areas, high school graduation numbers are down, and when you couple this with parents/kids waking up to the higher education scam, the skyrocketing costs, and the debt bubble, enrollment trends are really bad. Lower-tier state schools are in big trouble in many areas. Private schools without large endowments and wealthy alumni networks can’t provide the financial aid to compete against subsidized state schools, and if they lack the prestige, less and less kids are willing/able to load up with that kind of debt.

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  4. Yes! You are the only person commenting on why Ariana Grande, an Italian American, should look so dark!

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  5. There are currently real estate bubbles all over the world, which is not a good sign.

    Taiwan, where I live, is just off the top of where it was a couple of years ago, but the bubble has by no means burst. Only a few years ago, Taipei was in the situation where it would have taken the average investor 80 years to pay off the loan via rental yields. Tons of people here have zero interest loans (at record low rates) and are still hoping to flip. Lots of people here are spending 40%+ of their gross income on servicing their loans (whether interest only or interest and principal).

    China is a house of cards, of course (and both the Taiwanese and Australian economies are heavily dependent upon China).

    Australia, where I am from, is in the position where people in Sydney and Melbourne have bought property 8-12 times their incomes (the historic average was 3-4). Average houses an hour from the centre of Sydney are selling for more than 1 million AUD (750,000 USD). Melbourne has more than 100 suburbs where the median house price is 1 million AUD. Recent reports have put the number of households on the brink of default in the hundreds of thousands (out of a national population of ~24 million). Australia has the second highest level of household debt. Australia is now almost completely a service sector economy, with some primary produce going to China (and the wheels are falling off that). Australia doesn’t actually manufacture anything anymore. One of its top three “industries” is tertiary education. Australia has not had a recession in 25 years, but all of the signs are pointing towards one very soon.

    Meanwhile, of course, Chinese are trying to get into Australia any way they can to escape the carnage and probable criminal charges coming in China. There is a massive amount of corruption between Chinese and Australian politicians, and a hidden secret is the massive amount of agricultural land and infrastructure being bought by Chinese (individuals and institutions). Baby Boomers and Gen Xers won’t dare take their feet off the population ponzi going on lest their wealth evaporate. Average Australian Millennials can’t get on the property ladder. There are massive inter-generational and ethnic tensions just bubbling beneath the surface, and the consumeristic economy of mePhones and over-priced cafe food (toast with avocado on a Saturday will easily cost 15 USD in Sydney or Melbourne) is only just keeping a lid on those.

    When the top of this one blows, it’s going to be brutal. I’m currently in the process of trying to cash out of Taiwan. I will then return to Australia and live with my parents (and sit on a pile of cash, hopefully) and wait for that one to go off so that I can buy a house and 20+ acres on the cheap.

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  6. I watched the real estate bubble destroy my hometown. Something with which I regretfully helped do. My county was one of the fastest growing counties in the country back then. It was 2006 and I was in my last year of high school. All kinds of money was being thrown around everywhere. Some friends and I decided to start a paint crew. At first we were using rollers but after we got the first check we bought a spray machine. Then after that we were making $1000 a day and that’s a lot of money when you’re 17.

    None of us stopped to think who is going to be living in all of this low income housing that’s going up. It didn’t even cross my mind. The population of my hometown multiplied and you can imagine who the new residents were. My county went from being 90% white to white minority.

    It would have been nice to have been warned. The politicians just stabbed us all in the back and they had to have known what would happen welcoming and providing incentive for all that building. Republicans will fight tooth and nail to prevent low income housing going up in areas they want to protect. They knew. I was naive and didn’t know any better. If my 17 year old self knew that all of the building was for shipping in minorities I wouldn’t have did that work. But my hometown is gone now.

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